1 Commercial Banking Banorte Investor Day November 16, 2007.

1

Commercial Banking

Banorte Investor Day

November 16, 2007

2

Contents

1. Commercial Overview

• Infrastructure

• Key Volume Indicators

• Key Performance Indicators

2. Competitive advantages

• Process improvements

• Commercial Alliances

3

Contents

1. Commercial Overview

• Infrastructure

• Key Volume Indicators

• Key Performance Indicators

2. Competitive advantages

• Process improvements

• Commercial Alliances

4

Footprint Coverage

September 2007

Commercial Overview

GROGRO

TOTAL SISTEMA

Branches 139$79

Population 11.6

NOROESTE

OCCIDENTE

MEXICO NORTE

SUR

PENINSULAR

CENTRO

NORTEBranches 208

$103Population

Branches 115$55

Population 12.2 Branches 138$60

Population 14.4

Branches 127

Branches 75$50

Population 10.0

Branches 100$41

Population 24.1

MEXICO SURBranches 121

Branches 1,023$67

Population 103.3

Pop- Millions

8.2

GDP per capita – Thousands of pesos

$96Population 22.7

GDPGDP

GDP

GDP

GDP

GDP

GDP

GDP

NORTHWEST NORTH

CENTRAL

OCCIDENTAL

NORTH MEXICO CITY

SOUTH MEXICO CITY

TOTAL

SOUTH

5

967994

1,053

1,133

2005 2006 2007e 2008e

3%

6%

8%

Infrastructure

Branch Expansion Program

14.1%Market Share

13.9% 14.3% 14.8%

6

2,7923,169

3,644

4,114

2005 2006 2007e 2008e

14%

15%

13%

Infrastructure

ATM Network

12.9%Market Share 13.1% 13.9% 14.5%

7

20,562

28,653

38,016

47,520

2005 2006 2007e 2008e

40%

33%

25%

Infrastructure

POS Terminals

8

7,115

7,302

7,521

7,747

2005 2006 2007e 2008e

3%

3%

3%

Infrastructure

Employees: Sales force

12.0%Market Share 11.8% 11.6% 12.0%

9

10%

16%

11%

Infrastructure

Millions of Customers

4.54.9

5.76.6

2005 2006 2007e 2008e

9%

16%

16%

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Key Metrics

Units % Units %

Branches 100.8 27% 111.0 25% 10%

ATM's 155.7 42% 179.4 41% 15%

POS 21.6 6% 33.1 7% 53%

Internet 81.2 22% 102.3 23% 26%

Banortel 14.3 4% 17.1 4% 19%

Total 373.6 100% 442.9 100% 19%

Sep’06 Sep ‘07% Var

Channel

# %

Transactions in millions

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Average Monthly Sales

Products Per Branch

Key Metrics

Sep ‘06 Sep ‘07 %

Consumer 45 53 18%

Deposits 89 104 17%

Banc-assurance 37 43 16%

Total 170 200 18%

Product

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Key Metrics

DateCross-selling

Index

Jun ’06 1.88

Dec ’06 1.99

Jun ’07 2.03

Dec ’07e 2.11

Dec ’08e 2.21

Cross-selling index

Products Per Client

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Constant billion pesos

Total Deposits

Demand

Time 14%

14%

17%

18%

12%

15%

121138

157

182

14

Total Loans

Constant billion pesos

Consumer

Commercial

Government

25%

27%

(32%)

41.451.6

62.279.6

52.466.4

86.6

114.3

15.410.5

12.2

21.0

2005 2006 2007 E 2008 E

21%

30%

16%

28%

32%

72%

109128

161

215

15

2005 2006 2007e 2008e

Service Fees

Constant billion pesos

3.84.4

5.1

5.9

16%

16%

15%

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Contents

1. Commercial Overview

• Infrastructure

• Key Volume Indicators

• Key Performance Indicators

2. Competitive advantages

• Process improvements

• Commercial Alliances

17

Use of digital files for electronic loan authorizations.

Benefits:

Faster response time in consumer loans.

Parametric credit analysis.

Uniform approval / rejection criteria.

Competitive Advantage

Evaluation and

Resolution

Entry ofcustomer’s information

15 min 5 min 2 - 4 hrs

Electronic Authorization

CRE@

Digital Credit Process

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Off site loan origination capabilities:

Remote access to evaluation system

De facto mobile sales force.

Competitive Advantage

Banorte’s Applications

VPNCenter

Private Key

Virtual Private Network

Laptop

Banorte Virtual

Inputs

Safe password w/ dynamic token

MMoobbiillee IInntteerrnneett

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Competitive Advantage

Tracking of sales’ force metrics.

Planning, development & client retention tool.

Cross-selling tool.

Incentive based compensation schemes.

SIVSSales Force Supervision

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Alliance with Telecomm

Mexican Telegraph Company.

1,559 agencies nationwide.

Provides services for un-banked communities:

Debit cash withdrawals, deposits and payments.

Entry level accounts: Banorte Fácil.

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Deposits

Withdrawals

Check balances

Savings account openings

Total

AVERAGE MONTHLY TRANSACTIONS

Service Transactions

140,948

62,904

8,940

1,288

214,080

2. Competitive advantages

22

Certain statements in this document are

“forward-looking statements”. These

statements are based on management’s

current expectations and are subject to

uncertainty and changes in

circumstances. Actual results may differ

materially from those included in these

statements due to a variety of factors.

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36

Rentabilidad de Sucursales

AVERAGE QUARTELY EARNINGS

$ millones de pesos corrientes* Sucursales con menos de 2 años de antigüedad.

2006 2007

Per Branch 1.5 1.9